Retirement Planning Review in Brighton, CO

What to know before you choose

Health care is one of the largest retirement costs, and the rules change at 65. If you retire before then, you need a bridge until Medicare. At 65, you have a seven month window to enroll, and your choices then, Medicare Advantage or Original Medicare with a Medigap plan, shape your costs for years. We lay out those dates for you and your spouse first.

Social Security timing affects everything else. Full retirement age is 67 for anyone born in 1960 or later, and claiming earlier permanently reduces your benefit (Social Security Administration). Medicare eligibility stays at 65 regardless of when you claim, so many people enroll in Medicare before they start Social Security benefits. The Social Security retirement estimator is a good place to test different ages; bring the results to our review.

Income in retirement can raise Medicare costs. In 2026, single people with income above $109,000 and couples above $218,000, based on the tax return from two years earlier, pay an income-related amount on top of the Part B premium, starting at $284.10 a month instead of $202.90 (CMS). Required minimum distributions from traditional IRAs and most work plans generally begin at age 73 (IRS) and count as income, so the timing of withdrawals matters.

Social Security in dollars. For anyone born in 1960 or later, claiming at 62 cuts the benefit by 30%: a $1,000 benefit at full retirement age becomes $700 for life (Social Security Administration). Waiting past full retirement age adds 8% a year until 70 (SSA). The $1,000 is the SSA's own example figure; your statement has your real one.

Colorado taxes retirement income more gently than wages, and the rules shape which account you draw from. Colorado lets each person subtract up to $20,000 a year of pension and annuity income at 55 to 64 and up to $24,000 at 65 or older. At 65 or older all Social Security included in federal taxable income can be subtracted, and from 2025 the same applies at 55 to 64 when adjusted gross income is no more than $75,000 single or $95,000 joint. The catch: any Social Security subtraction reduces the pension subtraction the same person can claim (Colorado Department of Revenue).

A worked example of that catch, for one hypothetical 66 year old, as I read the Department of Revenue guidance. She has $18,000 of Social Security in federal taxable income and a $15,000 pension. She subtracts the $18,000 of Social Security, which leaves $6,000 of the $24,000 cap for the pension, so $9,000 of the pension stays taxable. At Colorado's 4.4% rate for 2025, the $24,000 of subtractions save her about $1,056 in state tax. Her spouse gets a separate cap on a joint return. Your tax preparer confirms your own numbers; I make sure the health insurance side of the plan fits them.

A sample timeline, for a hypothetical couple who are both 61 this year and want to stop work at 62. Year one: she leaves her job, they compare COBRA with the Colorado marketplace, and they plan their draws so income stays below the 400% line that decides the tax credit. Years two to four: they review income each fall before Open Enrollment. Three months before each 65th birthday month: Medicare enrollment begins, the Medigap window is noted, and the ACA plan is ended for that spouse. Two years before Medicare: they watch income, because Medicare's income-related premium looks back two years. At 67: full retirement age, the earliest they can claim without the reduction; at 70: delayed credits stop. Each fall: a Medicare or health plan review with me.

Protection is the last piece. We talk through whether you want income you cannot outlive (an annuity), coverage for a recovery after an illness (short-term care), and money for final expenses so your family is not left with the bill. Nothing is recommended until we have talked it through. I take a commonsense approach: I ask questions, listen to your answers, and only then recommend the type of policies that will fit your unique needs.

What this review is not: I do not give investment, securities, tax or legal advice. If a question belongs with your financial advisor, accountant or attorney, I will say so, and I am glad to work alongside them.

Your needs and situation are unique, and I am committed to spending the time to get to know you so you get coverage and support that fits your lifestyle.

Colorado rules to know

For under 65 coverage, Colorado uses its own marketplace, with Open Enrollment for 2027 from November 1, 2026 to January 15, 2027. For Medicare questions, call me at (303) 887-8584.

If you have lived and worked in more than one state, your Medicare and plan choices still depend on where you live now. Moving to or from Colorado opens a Special Enrollment Period for Medicare Advantage and Part D.

Colorado state tax: up to $20,000 of pension and annuity income subtracted per person at 55 to 64 and $24,000 at 65 or older, all taxable Social Security subtracted at 65 or older (and at 55 to 64 under the income limits), with a Social Security subtraction reducing the pension subtraction (Colorado Department of Revenue, January 2025). The income tax rate was 4.4% for 2025 (DR 0104 booklet); the 2026 rate was not yet published when this page was checked.

How and when to enroll

1. Book a review by phone or in person at the Brighton office, ideally two to five years before you plan to retire and again in the year before you turn 65.
2. Bring your Social Security statement, current health coverage details, a list of doctors and prescriptions, and any existing life, annuity or long-term policies.
3. We build a timeline: last day of work, health coverage bridge, Medicare dates, Social Security decision and any coverage to add.
4. We revisit it each year at your Medicare or health plan review.

Common mistakes to avoid

• Missing your Medicare Initial Enrollment Period because you are not claiming Social Security yet.
• Taking large withdrawals in a year that sets your ACA tax credit or your Medicare income-related premium.
• Planning income without planning for health costs.
• Buying products before you know the gap you are trying to fill.
• Claiming Social Security early only to pay for health coverage that a better timed ACA plan would have made cheaper.

What Lisa checks for you

1. Your last day of work, each spouse's 65th birthday month and the health coverage bridge in between.
2. Your income plan for each year until Medicare against the 400% tax credit line, and two years ahead against the Medicare income-related premium.
3. Your Social Security statement and the claiming ages you are weighing, so Medicare dates are never tied to them by mistake.
4. The Colorado pension and Social Security subtractions, so you can ask your tax preparer the right questions.
5. Any existing life, annuity or long-term policies, before anything new is discussed.

Questions to ask Lisa

• When exactly do I need to sign up for Medicare if I am still working?
• How do I cover health insurance if I retire at 62?
• Will my IRA withdrawals raise my Medicare premium two years from now?
• What does Colorado tax on my pension and Social Security?
• Do I need an annuity at all, or is my income already covered?

How Lisa helps

• A no-cost review of your health coverage and retirement timeline
• Medicare and Social Security dates mapped for you and your spouse
• A bridge plan for health coverage if you retire before 65
• Income-related Medicare premiums explained before they surprise you
• Annuity, short-term care and final expense options discussed only where they fit
• A yearly follow up as your plans change

Who it fits

You are within a few years of retirement, turning 65 soon, or already retired and unsure whether your health coverage and income plan fit together. Couples and families planning across generations are welcome.